Q&As

When do the Commercial Agents Regulations (or their EEA member state equivalents) apply where an agent is appointed for a territory outside Great Britain?

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Published on LexisPSL on 19/07/2017

The following Commercial Q&A provides comprehensive and up to date legal information covering:

  • When do the Commercial Agents Regulations (or their EEA member state equivalents) apply where an agent is appointed for a territory outside Great Britain?
  • Commercial agency definition and regulations

When do the Commercial Agents Regulations (or their EEA member state equivalents) apply where an agent is appointed for a territory outside Great Britain?

See the following information from Agency—overview.

Commercial agency definition and regulations

The regulations therefore apply to many business agencies where the agent performs its duties in Great Britain although equivalent provisions apply in Northern Ireland and similar provisions apply in each of the European Economic Area (EEA) countries. Local legal advice should be obtained in cases where the agent performs their duties in these countries. (our emphasis)

The Commercial Agents (Council Directive) Regulations 1993 (Commercial Agents Regulations 1993), SI 1993/3053 have substantially modified previous agency law in relation to those agents defined as commercial agents, one of the most substantial changes being that the agent may be entitled to a payment on termination of the agency. The Commercial Agents Regulations 1993 set out in detail the obligations of principal and commercial agent, many of which cannot be excluded by contract.

The Commercial Agents Regulations 1993 do not apply to agents who:

  1. deal solely in services

  2. deal in goods that are only secondary to the supply of services (eg satellite television boxes for the purposes of receiving subscription-only television services)

  3. undertake activities that are secondary in developing goodwill for the principal

  4. are unpaid

  5. trade on commodity markets

  6. only have authority extending to one transaction (although the courts have considered multiple extensions of

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